Business Context and Reporting Period
Company: Bone Biologics Corp (BBLG)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: June 30, 2026
Business Overview: A clinical-stage medical device company focused on bone regeneration in spinal fusion using the recombinant human protein NELL-1 combined with demineralized bone matrix (DBM). The lead product, NB1, is currently in a pilot clinical study in Australia. The company has no significant operating history and has incurred accumulated losses of approximately $89.7 million since inception.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
|---|---|---|
| Revenues | $0 | $0 |
| Net Loss | $(1,539,690) | $(1,757,611) |
| Operating Expenses | $1,613,160 | $1,786,563 |
| Research & Development | $450,344 | $615,186 |
| General & Administrative | $1,162,816 | $1,171,377 |
| Interest Income | $73,313 | $26,695 |
| Cash and Cash Equivalents (End of Period) | $4,031,780 | $6,640,468 |
| Net Cash Used in Operating Activities | $(1,322,722) | $(1,385,004) |
| Net Cash Provided by Financing Activities | $20,180 | $4,700,341 |
| Warrant Liability | $546 | $703 |
Material Changes vs. Prior Period
- Net Loss Reduction: Net loss decreased by approximately 12.4% to $1.54 million for the six months ended June 30, 2026, compared to $1.76 million in the prior year period.
- Operating Expenses: Total operating expenses decreased by 9.7% to $1.61 million. This was driven primarily by a 26.8% decrease in Research and Development (R&D) expenses ($450k vs $615k), attributed to the timing of clinical trial activities.
- Interest Income: Interest income increased significantly by 174.6% to $73,313, reflecting higher yields on cash balances.
- Financing Activity: Financing cash inflows dropped drastically from $4.7 million in the prior year to $20,180 in the current period. The prior year included a significant public offering; the current period only included minor proceeds from an At-The-Market (ATM) offering.
- Stock-Based Compensation: Decreased from $123,504 in the prior year to $31,758 in the current period.
Outlook, Risks, and Subsequent Events
- Going Concern: The company has raised substantial doubt about its ability to continue as a going concern. Operating expenditures for the next twelve months are estimated at $6.2 million. Without additional financing, the company may need to scale back or discontinue operations.
- Subsequent Financing (July 2026): On July 7, 2026, the company completed a private placement raising approximately $2.7 million in net proceeds. This includes the issuance of pre-funded warrants and Series F/G warrants. Management expects available cash, including these proceeds, to fund operations into the second quarter of 2027.
- Listing Risk: The company is currently not in compliance with a new Nasdaq Market Value of Listed Securities (MVLS) requirement of $5 million. If the rule becomes effective and the company fails to comply within 30 business days, its securities could be suspended and delisted, severely impacting liquidity and capital raising ability.
- Regulatory Status: The lead product NELL-1/DBM requires FDA Pre-Market Approval (PMA). The company is conducting a pilot clinical study in Australia to support a future pivotal trial in the U.S.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $2.7 million raised in July 2026 against the estimated $6.2 million annual burn rate to confirm the "Q2 2027" funding timeline.
- Nasdaq Compliance: Monitor the status of the SEC stay on the MVLS requirement and the company's market capitalization to assess delisting risk.
- Clinical Trial Progress: Review updates on the NB1 pilot clinical study in Australia and the timeline for the pivotal U.S. trial.
- Dilution Impact: Assess the dilution from the July 2026 private placement (2.1 million pre-funded warrants and associated Series F/G warrants) and the existing warrant overhang (2.75 million outstanding warrants).
- License Obligations: Confirm the status of milestone payments and diligence fees owed to UCLA TDG under the exclusive license agreement.